Employment Law Questions? Ask an Employment Lawyer.
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Yes, you could do that, but the question is why would you want to. If the salary is now only compensating for 40 hours and everything else must be paid as overtime in addition to that, why not just convert the employee to hourly? Either way you have to keep track of all the employee's hours. Maintaining the salary simply means that you will be paying for 40 hours even in weeks where the employee does not work 40 hours. If you are going to go through the hassle of keeping track of all the employee's hours, you might as well benefit from the fact that you can pay for less than 40 hours if they wind up working less than 40 hours. There is just no logical reason for an employer to pay salary plus overtime.
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